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A regional perspective on poverty reduction strategies
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2. POVERTY REDUCTION IN COMESA AN OVERVIEW OF COMESA, ITS PROGRAMMES AND ACTIVITIES
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2.1 Overview of COMESA
The Common Market for Eastern and Southern Africa (COMESA) currently boasts 20 member States in North, Eastern, Central and Southern Africa and the Indian Ocean. It is the world's largest regional economic grouping in terms of country membership. It represents close to half the members of the African Union. COMESA members are:
- Angola, Burundi, Comoros, Congo DR;
- Djibouti, Egypt, Eritrea, Ethiopia;
- Kenya, Madagascar, Malawi, Mauritius;
- Namibia, Rwanda, Seychelles, Sudan;
- Swaziland, Uganda, Zambia and Zimbabwe.
COMESA now has a population of over 340 million people, a combined GDP in excess of US $ 170 billion and numerous natural resources, which include
- vast tracts of arable land, most of which can be easily irrigated;
- huge hydro-electric power potential;
- large mineral deposits which include iron ore suitable for steel production, phosphates suitable for some fertiliser manufacturing, coal both coking as well as fuel coal, uranium, nickel, copper and cobalt;
- natural gas and petroleum oil;
- gold, diamonds and other precious and semi-precious stones.
2.2 COMESA Vision, Programmes and Activities
COMESA's vision is to create an internationally competitive regional economic grouping with high standards of living for its citizens. Of the 20 countries in COMESA 13 are classified as Least Developed Countries. While economic growth has risen over the years, averaging between 3% and 4% over the last 6 years, it is not considered high enough to impact positively on poverty levels in the region.
For reduction of poverty in the region, the COMESA member States have adopted growth-oriented economic policies which includes, among other things,
- paying sufficient attention to vocational training, tertiary education and technological infrastructure;
- developing and maintaining physical infrastructure;
- striving to attain export/GDP ratio of at least 30%;
- increasing domestic savings to support investment;
- promoting investment to reach at least 25% of GDP;
- fair distribution of income;
- institutional development, both nationally and regionally; and
- above all, cultivating a culture of peace and security.
In fulfilling its objective of developing the economies of its member States in a harmonious and balanced manner, COMESA members are implementing specific programmes aimed at enhancing integration among them by pooling resources and enjoying economies of scale through a larger market.
Notable among COMESA's programmes and activities currently being successfully implemented are:
- A Tariff reduction programme which led to a Free Trade Area on 31st October 2000. Nine (9) countries - Djibouti, Egypt, Kenya, Madagascar, Malawi, Mauritius, Sudan, Zambia and Zimbabwe - are currently part of the Free Trade Area. Efforts are underway for other countries to join the FTA, but in the meantime, these countries are trading on preferential terms ranging from 20% to 40% of the national (MFN) tariffs.
- Elimination of non-tariff barriers. Nearly all conventional non-tariff barriers to intra-regional trade have been eliminated. These include import and export quotas and restrictive export and import licensing and the like.
- Easing the movement of goods by streamlining trade procedures and documentation. This has encompassed introducing common and simplified customs documentation, a common carriers licence for truckers and road hauliers, a simplified transit registration system and a computer-based cargo tracking system starting from the ports, on rail and on the road.
- Easing the movement of persons by relaxing visa requirements and extending the coverage of the common third party motor vehicle insurance scheme - the COMESA Yellow Card.
- Formulation of regional policies in the area of competition law and policy and public procurement that will enhance the operation of the more integrated economies of the region.
- Liberalisation and harmonisation of their monetary and payment systems with a view to improving settlement of trade accounts and enhancing the flow of capital among member States.
- Introducing common infrastructural use controls and limits such as maximum vehicle dimensions and overload controls (axle weight limits) to preserve the region's infrastructure.
- Improving data and information collection, storage, and exchange for development purposes in all fields. Pioneers programmes have been trade and customs information management systems through the Automated System of Customs Data and Management (ASYCUDA) and Eurotrace both of which are operational in a number of COMESA and non-COMESA member States.
- Private sector support programmes and facilities aimed at encouraging and enhancing private sector capacity in fully participating and spearheading the region's development process. These facilities include establishment of a trade and development bank offering trade and project finance; a re-insurance company, and specialised and sector-specific programmes in leather, metallurgy, iron and steel, pharmaceuticals and other chemicals.
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